"I fear for Simon Kerrigan. England have thrown him back into international cricket far too soon," Vaughan said.
Kerrigan was surprisingly selected for the fifth Test against Australia at The Oval last year but failed to justify his inclusion as he conceded 53 runs from just eight overs.
He never recovered from a brutal early assault from Australian batsman Shane Watson as his first two overs went for 28 runs.
The Lancashire left-arm spinner has been named in the 14-member England squad after the opening Test of the five-match series ended in a tame draw at Nottingham.
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Vaughan believes the 25-year-old Lancashire spinner is not ready to win his second cap.
"If the second one goes badly, he can never come back from that again," the former England opener told BBC Radio.
"If he goes out on Thursday and it's like that situation against Watson, he won't come back from that for a long time," he said.
"He's not pulled up any trees for Lancashire this season," said Vaughan.
"Why rush the lad back in? Throwing him out to bowl at Lord's against an Indian batting line-up who can play spin with their eyes shut... I just think is unfair," the former England skipper said.
Former England spin bowler Phil Tufnell said: "It must be a horrible position for the lad now. I don't know how that's affecting him.